To many people a decade or so ago, Elizabeth Holmes was the founder of high-flying blood-testing startup Theranos. To Daniel Edlin, she was the sister of his Duke University college buddy, Christian.
Edlin, who was first called Friday as a witness for the government and resumed testifying Tuesday, said he was at times asked by Holmes to make changes ahead of tours of the Theranos headquarters, including hiding certain areas of its research and development lab from important visitors. He said partitions were sometimes used to conceal areas where Theranos' devices were located.
Edlin was also involved in the company's communications with the US Department of Defense -- a relationship that the prosecution has zeroed in on as one of the ways Holmes allegedly misled investors and business partners. Former executives for Walgreens and Safeway testified they'd been told Theranos had been doing work with the Defense Department and that its devices were in use in medical evacuation units.
Edlin testified that the research program discussions went on for "months, if not years" and that Theranos sent three devices to a warehouse in Kentucky for the military to use for evaluation purposes. "I recall the devices were sent, received, but then no additional action was taken," Edlin testified.
Edlin testified that he left Theranos in part because he "no longer believed based on what I was seeing that the company was capable of standing behind the claims it had been making about its technology." Holmes' attorney Kevin Downey, who began cross examining Edlin before the day recessed Tuesday and is expected to continuing his questioning of the former employee for much of the day Wednesday, established that restricted flow of communication inside the company was at times associated with "protecting Theranos' trade secrets."
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